We’ve redesigned the transfer function in Wave’s Transactions page to be more intuitive and straightforward than ever. We’ll take you through all of the changes and improvements below!
Whenever you move funds between accounts, like when you pay off your credit card or move money from your checking account to your savings account, the resulting transactions should be categorized as a transfer. This will link the two transactions and tie the withdrawal from one account to the deposit in the other.
Before the update to the transfer function, transfers were performed by selecting two transactions and clicking the Transfer button at the top of the page. We’ve removed the Transfer button from the Transactions page and integrated it into the categorization process. This has allowed us to add extra language to each transfer that you perform to provide you with more context end help ensure that each transfer is being handled properly.
How to create a transfer:
- Any transfer will consist of two transactions: the withdrawal from one account, and the deposit being received in the other. To link both, open up the category drop-down in either of the two transactions.
- Select Transfer to Bank, Credit Card, or Loan or Transfer from Bank, Credit Card, or Loan (withdrawal transactions will have the first option, while deposit transactions will have the second).
- If you have both accounts connected to Wave, and both sides of the transfer have been imported, then the system will now automatically detect the other side of the transfer, and ask you if you’d like to link the transaction to the account containing the matching transaction. Select this and you're done! If only one half of the transfer has been imported, or if you are manually adding transactions, then selecting Transfer to or Transfer from Bank, Credit Card, or Loan will prompt you to select the other account affected by the transfer.
- Once an account is selected, the system will account for the second half of the transfer by creating a new transaction in the selected account. This will be reflected in the notes section of the automatically created transaction.
If the other half of the transfer is imported after the transfer has been created, then it will be necessary to delete the newly-imported transaction, as it will already have been accounted for.
If you’re manually creating transfers, the system will assign the same date to the second half of the transfer as the first half. If the two halves of the transfer are spread out over two separate dates, be sure to edit the date of the second half so that it reflects the transaction's actual post date.
To improve the accuracy of your bookkeeping whenever a transfer is created, we’ve added a brand new transfer clearing account. This account appears in your balance sheet and contains the balance of any transfers in which one half has affected an account, but the matching amount has not yet posted to the other (as a real-world example, let’s say you paid your credit card off on Friday, but the transaction didn’t post until Monday). The transfer clearing account works in the background to account for any gaps between when a transfer is initiated and when it clears.
You now know everything there is to know about the new-and-improved transfer feature.